By John H. Smith
December 11 2008
Due to its purchase of Merrill Lynch and worsening economic conditions, Bank of America said it will cut up to 35,000 jobs over the next three years.
Under its leadership, Bank of America previously seemed to have weathered the financial storm compared with some other banks that have engaged in riskier lending activity that plagued other banks such as Wachovia and CitiBank.
However, in its a statement today, the Charlotte bank said it is “working on a plan to eliminate a significant number of positions over the next three years.”
The bank added that the two main factors are its pending merger with Merrill Lynch & Co., Inc. and “the weak economic environment.”
The bank said it would have a final plan released early next year but did say that the total number of job losses would be between 30,000 to 35,000 positions over the next three years.
“A final number will not be determined until early 2009,” said the bank.
The company said that severance packages would be offered to those who were laid off.
Bank of America continues to do business actively with all of its client segments. It continues to benefit from a flight to safety, attracting deposits and new client relationships. In addition, the company continues to actively originate loans through all of its credit product lines.
Shareholders of both companies voted to approve the transaction last week and Bank of America is currently targeting a closing on Jan. 1, 2009.
Bank of America says it serves 59 million consumer and small business customers and now has over 6,100 retail banking offices.